Peso Rides on Dollar Weakness Against Major Currencies

The Philippine peso appreciated against the US dollar on Monday, as the greenback weakened against major currencies over the weekend.

The local currency gained 9 centavos to close at P50.09:$1 from last Friday’s 50.18.

“We saw the dollar weaken against other major currencies over the weekend up to now, as it might be due to the G20 meeting,” a foreign exchange trader from a local bank said in a phone interview.

The G20 decided to drop a pledge skirting trade protectionism over the weekend.

“Financial leaders from the world’s biggest economies reiterated their warnings against competitive devaluations and disorderly foreign exchange markets at the meeting in the German town of Baden-Baden over the weekend,” a Reuters report said. “But they failed to agree on a commitment to keep global trade free and open, highlighting a global shift towards protectionism,” it added.

The trader noted that the peso tracked regional currencies which also strengthened against the dollar. “Regional currencies are trading higher against the dollar. I think we’re following suit,” the trader said.